New Report: Pay by Bank Now ‘Table Stakes’ for Banks and PSPs as Merchant Demand, Confidence Surges
By Dominic Sow · 3 November 2025
Merchant demand, rising market confidence, and robust growth expectations have made Pay by Bank table stakes for banks and payment service providers (PSPs), with 59% of banks and 90% of PSPs now offering, or planning to offer, Pay by Bank services.
These are the findings detailed in a new survey report published by the leading A2A payment infrastructure provider, Token.io, and Open Banking Expo. The report – which surveyed 96 banks, payment service providers (PSPs), third-party providers (TPPs), merchants and industry observers – gauges industry demand for, and adoption of, open banking-enabled account-to-account (A2A) payments, more commonly referred to as ‘Pay by Bank’.
Driven by reduced processing fees, faster settlement, and improved conversion rates, the research reveals strong merchant demand for Pay by Bank, with 91% noting demand and 39% describing it as “high”. According to the data, PSPs (which enable merchants to accept payments at checkout) are reacting: an overwhelming 95% of PSPs view Pay by Bank as a key part of their near-term product strategy, with 40% describing it as “extremely important”.
Aligned with high merchant demand, and respondents’ expectation of at least moderate Pay by Bank growth in the UK (78%) and Europe (88%) over the next year, banks are also recognising, and acting on, the payment method’s commercial potential. Among banks surveyed, 42% currently provide Pay by Bank services to corporate clients, while a majority either accept or plan to accept deposits and payments from retail customers through Pay by Bank.
Todd Clyde, CEO at Token.io comments: “Our research confirms significant appetite among all key payment stakeholders for A2A payments: Merchant demand is strong, PSPs are mobilising quickly, and banks increasingly view Pay by Bank as both a revenue driver and a core part of their product strategy”.
“The convergence of merchant appetite, PSP agility, and bank engagement signals a turning point for the market, and suggests an industry readying itself for a future where Pay by Bank is a trusted and essential part of how merchants and consumers transact in the UK and Europe”.
Ellie Duncan, Head of Content at Open Banking Expo adds: “The Pay by Bank: Signals and Trends report provides a fascinating snapshot of a market entering a new phase of growth and confidence. Pay by Bank is clearly making inroads — 90% of respondents have used it personally, and its recognition as a secure, straightforward way to pay is driving adoption. Combined with the industry’s growing awareness of commercial VRP, the momentum feels unstoppable”.
The survey also shows that payment industry attention is shifting toward commercial Variable Recurring Payments (CVRP), a new Pay by Bank capability that will enable further use cases, including subscription payments and 1-click e-commerce. Most PSPs and nearly all Third Party Providers (TPPs) surveyed report that merchants are requesting CVRP capabilities, with 62% of PSPs planning to support CVRP by the end of 2026.
The survey also points to a possible additional motivator for Pay by Bank demand: reducing reliance on overseas card schemes and digital payment options. Three-quarters of respondents (75%) reported ‘onshoring’ payment services to the UK/Europe is at least “somewhat important” to their organisation, with 29% stating it is “extremely important”.
About the companies
Open Banking Expo
Part of Borough Bench Media · Website · 14 stories on FF News since 2022
Previously on FF News:
- Pay by Bank Poised for Explosive Growth as Merchant Demand Surges, Token.io Survey Finds 21 October 2026
- Open Banking Expo UK & Europe 2026: Vinted, Santander, and Monzo Leaders to Headline Speaker Line-up 10 August 2026
- Merchants, Payment Providers Ready to Embrace CVRP but Lack of Bank Support Risks Progress 24 October 2024
Token.io
Website · 25 stories and 6 video interviews on FF News since 2019
Previously on FF News:
- Pay by Bank Poised for Explosive Growth as Merchant Demand Surges, Token.io Survey Finds 21 October 2026
- Apex Group and droppRWA Launch Unified Trust Stack for Institutional RWA Tokenisation 2 October 2026
- Open Banking Expo UK & Europe 2026: Vinted, Santander, and Monzo Leaders to Headline Speaker Line-up 10 August 2026
Companies in this story: Open Banking Expo, Token.io
People in this story: Ellie Duncan, Todd Clyde